Skip to main content

Social Media Influencers Displace Advertising

Visited by over two-thirds of the global online population, member communities -- which includes both social networks and blogs -- has become the fourth most popular online category, ahead of personal email.

It is growing twice as fast as any of the other four largest sectors (search, portals, PC software and email), according to the latest Nielsen market study.

About 67 percent of the global online population already accesses member community sites, and their increasing adoption show no sign of slowing. Social networking will continue to alter not just the global online landscape, but the consumer experience at large.

According to the Nielsen report, Facebook is visited monthly by three in every 10 people online across the nine markets in which Nielsen tracks social networking use. However, Orkut in Brazil has the largest domestic online reach (70 percent) of any social network in these markets.

The report provides insights into the changing size and composition of the global social networking audience, plus the increasing share of Internet time for which it accounts. The report also analyzes what advertisers and publishers can do to take advantage of the social network phenomenon.

However, other research studies already indicate that traditional advertising is often ignored by those using social networks. Moreover, trusted recommendations of products and services by individual social media influencers has displaced advertising as the most effective way to reach consumers.

Other findings of the study include:

- One in every 11 minutes online globally is accounted for by social network and blogging sites.

- The social network and blogging audience is becoming more diverse in terms of age: the biggest increase in visitors during 2008 to Web sites globally came from the 35-49 year old age group (+11.3 million people).

- Mobile phones are playing an increasingly important role in social networking. Nielsen found UK mobile Web users have the greatest propensity to visit a social network through their handset, with 23 percent (2 million people) doing so, compared to 19 percent in the U.S. (10.6 million people). These numbers are a big increase over last year -- up 249 percent in the UK and 156 percent in the U.S. market.

Update: Razorfish shared some insightful and thought provoking "Trends in Social Influence Marketing" for 2009, and beyond.

Popular posts from this blog

How a Digital-First CEO Leads Transformation

Some leaders reject the notion that "wait and see" is the best response to disruptive change. Savvy senior executives are already driving digital business transformation throughout their organization in an effort to gain a bold strategic advantage. According to the latest market study by International Data Corp (IDC), Digital-First CEOs plan to drive at least half of their income from digital business products, services, and experiences by 2027 -- that's ahead of the market average of 39 percent. Driven by their response to the COVID-19 pandemic, these business leaders have changed how they think about the relationship between business and technology, and how they approach the next digital transformation era -- from scaling digital technology to guiding a viable digital business. Digital Business Market Development IDC defines digital business as value creation based on technology, which entails: 1) Automated customer-facing processes and internal operations; 2) Provision

Digital Solutions for Industrial & Manufacturing Firms

Executive leaders of fast-moving consumer goods (FMCG) are seeking guidance on how to apply new business technology in their manufacturing operations. CIOs and CTOs are tasked with gaining insight into the best solutions for digital transformation. ABI Research evaluated the impact politics, regulation, the economy, supply chain, ESG, and technology are having on FMCG, pharma, producers of steel, chemicals, pulp and paper -- as well as the mining and oil & gas sectors. Digital Transformation Market Development "Our assessment found that the FMCG sector is under pressure from all sides," says Michael Larner, industrial & manufacturing research director at ABI Research . Securing raw materials is challenging considering lockdowns in China and limited grain supplies from Ukraine. Supply shocks are raising input costs, and operating costs are rising with higher energy costs coupled with the pressure to pay higher wages and work sustainably. "We all hoped that with th

Retail Transformation Gains New Momentum

Forward-thinking retailers now have a bright future. In contrast, those that failed to enhance their business model via digital transformation have struggled, declined, and their assets were eventually liquidated. The key difference between these two business outcomes is applied strategic foresight. Even as the world continues to emerge from a global pandemic, retail is growing at levels not seen in the last two decades. Retail sales grew by 7 percent in 2020 and by over 14 percent in 2021, which is in stark contrast to the 3.7 percent annual growth between 2010 and 2019. The increased demand for retail has put a strain on supply chains and retail operations worldwide. As a result, retailers and stakeholders are turning to automation solutions such as mobile robotics for operational ease. Retail Transformation Market Development According to the latest market study by ABI Research, worldwide commercial robot revenue in retail stores will have a Compounded Annual Growth Rate (CAGR) of o